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While CoinLoan makes temporary changes to the withdrawal limit, the lending company assures customers of the security of their assets.
Crypto lending platform CoinLoan has announced temporary changes in withdrawal limits amid the persisting tumult in the entire crypto market. In an official blog post, CoinLoan says customers could only withdraw up to $5,000 every 24 hours while the temporary restriction lasts. The company notes that the whole industry is suffering from the crypto dip, which has resulted in a surge in the withdrawal of assets from CoinLoan. As such, there is a need to cut withdrawal limits.
Introducing the temporary drop in withdrawal limit, CoinLoan explains the reason behind the action:
“We are introducing a temporary measure – a reduction of the account withdrawal limit – in order to balance the flows of funds and prevent liquidity-related interruptions. Please note that this is only a precaution, as the current level of liquidity meets our users’ needs.”
CoinLoan claims its strategy is to stop risky activities that may impact CoinLoaners’s fund. Stating that the crypto lending company is “probably” the only one unaffected by the challenges facing crypto lending businesses, CoinLoan said it still has to “take notice of the market.”
CoinLoan Limits Withdrawal
The company said that the temporary withdrawal limit would take effect immediately on the 4th of July. However, it emphasizes that the action is short-term, and the crypto lending platform hopes to ease the restriction as soon as the market situation permits. For now, the company says it needs to take “pre-emptive steps” to continually deliver excellent services to its consumers.
While CoinLoan makes temporary changes to the withdrawal limit, the lending company assures customers of the security of their assets. It boasts:
“CoinLoan is the oldest CeFi platform on the lending market. Since 2017, we have seen multiple adverse situations, but each of them gave CoinLoan strength and contributed to its growth. We understand how to handle difficulties, and we are also well-equipped to prevent them.”
Meanwhile, crypto CeFi lender Vauld Group has suspended withdrawals due to financial challenges. The firm complained of excessive withdrawal from its platform, and it has considered completely stopping it. Similarly, Celsius Network also halted withdrawals “due to extreme market conditions.” Celsius said it had to discontinue withdrawal as it works in the interest of its community.
CoinLoan refers to the complete suspension of withdrawal by other companies, adding that its users are its biggest priority. The lender further explains that disabling withdrawals may affect people who have their total savings stored on CoinLoan. Therefore, reducing withdrawal appears to be a better option as they can still access a portion of their savings.
Furthermore, the crypto lender assures:
“This temporary measure will let us ensure stable platform operations now and in the future. Prevention is better than cure, and being proactive is an integral part of our philosophy. We are confident that the current situation will make CoinLoan stronger, so we will continue delivering the best-in-class services to our users.”
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